Fair Allocation of Reactive Power Contribution by Generators in Ancillary Services Market

Objectives: In re-structured power systems, knowledge of reactive power supplied by the ancillary services and generators is required separately for accurate and fair cost allocation. The main objective is to price the reactive power based on each generator contributions and static capacitor contributions to individual loads. Methods/Analysis: A Y-bus matrix method is used to obtain the contribution of individual buses to loads. But this bus contribution doesn't give the fair cost allocation. So, the individual generator contributions should be found. Findings: To find the individual generator contributions a new methodology is proposed in this paper. This new methodology takes the bus inflows and outflows into consideration for finding the bus injections at the generator buses. Using this data, the contribution of generators to the loads can be obtained which gives rise to fair and transparent cost allocation. Applications: This method is applied on simple 5 bus system and on IEEE 30 bus system and obtained results are tabulated and compared with other existing methods.